UNIT 1

The Nature of Economics a) Scarcity b) Production possibility frontiers (PPFs) c) Specialisation, the division of labour, and the role of money d) Free market and mixed economies e) Positive and normative economics Demand and Consumer Behaviour a) The demand curve b) Price, Income and Cross Elasticities of Demand c) Consumer behaviour Supply a) The Supply Curve b) Price elasticity of supply Price Determination a) Determination of market equilibrium b) Consumer and producer surplus c) Functions of the price mechanism d) Indirect taxes and subsidies Wage Determination in Labour Markets a) The demand for and the supply of labour b) Determination of wage rates Market Failure a) Market failure Government Intervention in Markets a) Methods of government intervention b) Government failure